Share This Story!

Men create bogus Sept. 11 charity, swipe cash raised

TOMS RIVER, N.J. — Two men admitted guilt Monday in a scheme in which they stole thousands of dollars in donations by falsely claiming they were raising money to help families of those who died Sept. 11, 2001.

The guilty pleas, entered before state Superior Court Judge James M. Blaney, were related to their activities selling T-shirts and making appearances in a pickup truck custom-painted with Sept. 11 themes.

An earlier civil proceeding the New Jersey Division of Consumer Affairs brought against the men determined that they took in about $120,000 in the course of the scam through collecting donations and selling T-shirts under the guise the proceeds would benefit Sept. 11 charities and families of the victims.

In the civil proceeding in November, the defendants were ordered to repay that amount, as well as fines and costs of the investigation. They also were barred from ever working for any charitable organization in New Jersey, authorities said.

Jail time

In the criminal case, Niemczyk faces 364 days in jail under terms of his plea agreement. Scalgione faces a term of probation, but he likely also will go to jail because he violated conditions of an existing probationary term imposed in Monmouth County when he committed the theft, authorities said.

Blaney is scheduled to sentence the two men March 7.

"These con men shamelessly exploited the generosity of others, enriching themselves by diverting funds that were intended for the families of 9/11 victims," acting Attorney General John J. Hoffman said.

"These defendants exploited a tragedy for their personal gain, and justice demanded that they face criminal prosecution," said Elie Honig, director of the attorney general's division of criminal justice.

An investigation by the financial and computer crimes bureau of the Division of Criminal Justice revealed that Niemczyk bought a pickup truck in June 2010 and had it custom painted with Sept. 11 themes, including the World Trade Center towers, the logos of the New York City police and fire departments, and the names of the first responders who perished in the terrorist attacks. Scalgione acted as the public-relations person, making arrangements to bring the truck to Sept. 11 events, at which the pair sold T-shirts and collected donations from June 1, 2010, through July 4, 2012.

Though others have been prosecuted for scams involving the 2001 terrorist attacks, the most frequent target appears to have been charities and governments helping victims of the World Trade Center attacks. In the eight years after the attacks, the New York County District Attorney's Office brought charges against more than 500 people who had received more than $5 million.

A year after the attacks, what was then called the General Accounting Office said in a report to Congress that attorneys general and charity officials from seven states said they were investigating a total of 16 suspected cases of fraudulent solicitation of money.

In 2011, the Arizona Attorney General's Office began investigating a nonprofit called Stage 1 Productions, which is accused of raising more than $700,000 for a massive Sept. 11 memorial quilt that never was created. The charity's founder, Kevin Held, is accused of paying himself and his relatives more than a third of the money raised for the project. On Thursday, two days after the state attorney general's office was contacted about the status of the case, a spokeswoman said she could not comment.

Vendor discounts

The 2013 New Jersey indictment alleged the two men purchased hundreds of T-shirts upon which themes similar to those on the truck were printed. They obtained thousands of dollars in discounts from the two vendors that supplied the T-shirts, authorities said. The T-shirts, purchased by Niemczyk and Scalgione for $3 to $6.90 apiece, were sold for $20 apiece at the events both inside and outside New Jersey, and the pair also put out a jug to collect cash donations.

None of the proceeds ever went to any charity or victims, and instead was funneled into Niemczyk's bank accounts to pay for personal expenses, authorities said.

In pleading guilty, both men admitted deceiving the T-shirt suppliers to obtain about $5,000 in discounts, which they must repay as part of their plea agreements, authorities said. Deputy Attorney General Sarah Lichter handled the case and accepted the guilty pleas.

Mark Niemczyk of Tinton Falls, N.J., called himself a first responder and showed up at the site of the World Trade Center in Manhattan with his memorial truck on May 2, 2011, when news of the death of al-Qaeda founder Osama bin Laden was released.(Photo: Tom Spader, Asbury Park (N.J.) Press)